The document discusses competition in the tween girl toy market between Mattel's Barbie and MGA's Bratz dolls. It provides background on the global and US toy industries. It describes how Bratz captured 65% of MGA's sales by better understanding tween girls' preferences. Mattel struggled to compete and launched new doll lines like My Scene and Flavas. The document also summarizes Mattel's financial results for the second quarter of 2003, which showed declines in various brands and overall sales.

1. BARBIE VS. BRATZ COMPETITION IN THE TWEEN GIRL MARKET

2. TEAM MEMBERS ABANTI SANYAL ABHISHEK ROY AMIT KUMAR SAHAY A.V.K. CHAITANYA DHRITIMAN BHATACHARYA S.P.PARHI VAIBHAV SINGH

3. CONTENTS GLOBAL TOY MARKET US TOY INDUSTRY MATTEL’S BARBIE MGA’S BRATZ ANALYSIS MATTEL’S RESPONSE

4. GLOBAL TOY MARKET Was worth $60 billion as per 2003 estimates. Mattel and Hasbro were the world leaders . Other top players were Bandai and Sanrio from Japan Lego from Denmark Wal-Mart ,Toys “R” US were the leading toy retailers.

5. US TOY INDUSTRY The US toy industry originated in 1903 . An average American family was spending $20 on entertainment and recreation in 1903. Now an average American’s spends $400 per child per year on toys.

6. SIZE OF THE US TOY INDUSTRY

7. SIGNIFICANT SEGMENTS TOY SEGMENT MAJOR PLAYERS TOP BRANDS 1}INFANT/PRESCHOOL TOYS LEAPFROG ENTERTAINMENT LEAP PAD & LEAP PAD BOKS 2} ARTS & CRAFTS MATTEL MAGNA DOODLE & PIXTER 3} MODELS & ACCESSORIES HASBRO ZOIDS KIDS LINE 4} DOLLS & ACCESSORIES MGA ENTERTAINMENT MATTEL BRATZ BARBIE 5} BUILDING & CONSTRUCTION SET LEGO BIONICLE 6} GAMES & PUZZLES KONAMI YU – GI – OH! 7} LEARNING & EXPLORATION DATA NOT AVAILABLE DATA NOT AVAILABLE 8} &ENTERTAINMENT KID DESIGNS INC. BARBIE KARAOKE MACHINE

8. MATTEL’S BARBIE Launched -1945,in Southern California. Incorporated -1948 (Hawthorme, California). Major Byers. Wal-Mart ,Toys “R” US, Target (50% of Max Sales) Birth of BARBIE – 1959. 1 st Tele – Marketing – 1960. Dec 06,2001 – 90% market share. Barbie conveyed positive reflections of society and feminity – Roll Model.

9. PROBLEMS OF MATTEL Over production of Barbie. Doll collectors felt that Mattel treated them with contempt. Unsuccessful acquisition Feminists accusation Young girls went crazy, became anorexic Mattel Inc.: Summing up the Second Quarter 2003 Financial Results.

10. MGA AND BRATZ Bratz introduced -June 2001, by MGA . It became the top selling fashion doll by October 2002 [constituted 65% of MGA sales]. Won people’s choice award in 2002,along with 5 of the top 10 positions in the fashion doll category. “ BRATZ HAS DONE A GREAT JOB IN KEEPING GIRLS PLAYING WITH DOLLS AT AN OLDER AGE” -AMANDA HEARNDEN , Barbie's Brand Manager.

11. ANALYSIS “ BRATZ achieved something MATTEL had been trying to do for years i.e. getting Tweens to play with dolls”. HOW ? A better understanding of taste & preference of Target Market & a product design to suit that market. The phenomenon that MGA observed & took advantage of Were:- AGE COMPRESSION :- Kids judge their physical standards in comparison with adult standards at a very early age. Emergence Of TWEEN GIRLS Market :- A market that consists of girls who are from the age group of 8 to 14 . [It is to be mentioned here that emergence of the new segment was the result of AGE COMPRESSION itself.]

12. HOW AMERICAN GIRL TWEENS SAW THEMSELVES AS A RESULT OF AGE COMPRESSON. “ I LIKE THE WAY I LOOK”

13. APPROXIMATE SIZE OF THE US TWEEN MARKET VIS-A`-VIS OTHER DEMOGRAPHIC SEGMENTS

14. PURCHASING POWER OF THE AMERICAN TWEEN VIS-A`-VIS THE OTHER AGE GROUP IN BILLION $ / ANNUM IN $/ ANNUM / PERSON

15. TOY SPENDING IN THE US TOY SPENDING IN BILLION US $ AGE IN YEARS(OF THE US KIDS) 2000 ----- 1990

16. MATTEL’S RESPONSE Re organization of business units on 20 th February 2003. Mattel came up with BARBIE RAPUNZEL in 2002. Mattel came out with ‘MY SCENE’ Barbie in 2003 which costs $ 13.99. Offered 2 for 1- still unable to catch the market.

17. Mattel launches “FLAVAS”. Line of HIP-HOP fashion dolls. Designed to appeal to older girls. “ BARBIE CAN ONLY GO SO FAR ” - Eckert, Chairman & CEO MATTEL “ It (Mattel) can’t just rely on Barbies” -CHRISTOPHER PALMERI,a senior correspondent Business Week.

18. IS THEIR ANY QUESTION ?

19. MATTEL’S BUSINESS UNITS Mattel Inc. Fisher-Price Brand Business Unit (Infant and Pre-school Toys) Mattel Brands Business Unit ( Lifestyle Brands for kids of All Ages) American Girls Brand Business Unit (Products For Girls In the Age Group 3-12 Years) Mega Brands Barbie Hot Wheels Power Wheels Rescue Heroes Character Brands (e.g. Dora, the explorer) Little People American Girls Collection American Girl Today Magazine Girls of many lands Angelina Ballerina American Girl

20. Mattel Inc. Summing up the Second Quarter 2003 Financial Results Worldwide net sales down 4%. Domestic gross sales down by 15% and international gross sales up 11%. Worldwide gross sales for core brands: Barbie down 8%; Hot Wheels down 16%; core Fisher-Price down 3% and American Girl brands down 3%. Operating income down 6%. Earnings per share, excluding charges, reduced to $0.07 compared to the prior year.